Samsung Electronics is due a board upgrade 31 Aug 2017 The $300 bln tech giant is in disarray after the third-generation leader of its founding family was sentenced to jail. This would be a good time for other shareholders to push for a stronger board, bolstered by experienced outsiders and led by an independent chairman.
India’s tax attack on Li Ka-shing is a bad call 30 Aug 2017 New Delhi wants to wring the same taxes out of buyer and seller in an old telco deal. Slapping a $5 bln demand on Hong Kong’s CK Hutchison, while also chasing Vodafone, is farcical. If India really wants to end “tax terrorism” it should change its law and rein in bureaucrats.
Blackstone hunts Japanese deals – and pensions 30 Aug 2017 The U.S. private equity giant has hired a chairman in Tokyo and may earmark a chunk of a new Asian fund for Japanese buyouts. That should help it land money from local institutions, as they prepare to put billions of dollars into alternative investments.
Macau tycoon’s movie spinoff is worth watching 29 Aug 2017 Lawrence Ho’s Melco International wants to spin off Studio City, a film-themed resort in China’s gambling enclave. The business has been in need of a script doctor. New cash would help it stay competitive and the listing would let Studio City’s two other backers exit stage left.
Water woes may leave green-car hopes high and dry 28 Aug 2017 Ford is the latest to ramp up electric-vehicle production with a deal in China. But the industry relies heavily on the Democratic Republic of Congo for a crucial battery material. Drought, abysmal infrastructure and conflict could put ever-increasing supply needs at risk.
SoftBank’s Vision Fund has $34 bln jackpot in sight 28 Aug 2017 Japan’s Masayoshi Son is nearly done raising a $100 bln tech war chest. If investments double in value, SoftBank’s own holdings would swell by $28 bln, and it would share in nearly $6 bln more of profits. The challenge is finding good, big bets in already expensive markets.
Samsung guilty verdict is a victory for reformers 25 Aug 2017 The de facto leader of South Korea's biggest business faces five years in jail after an historic corruption trial. Assuming the sentence is not overturned, this boosts President Moon, who vowed to rein in powerful conglomerates. It should scare other bosses into behaving better.
Infosys founders get second chance on succession 25 Aug 2017 Nandan Nilekani will return to chair the IT firm he helped found. That is less than ideal - but could calm investors after its first outside CEO quit. The reputation of the king of Indian fintech now rests on bringing in new faces and leaving a firm that won't crash again.
How the Bank of Japan can keep the money flowing 25 Aug 2017 The disappearance of inflation is the big debate for central bankers in Jackson Hole this weekend. That puts Japan in an uncomfortable spotlight. The BOJ is running short of government bonds to buy - but could do more by becoming more creative in its asset purchases.
Japan Inc now chases unicorns, not Sunflowers 24 Aug 2017 SoftBank is putting an astonishing $4.4 bln into WeWork, a purveyor of hip shared office spaces. Growth means Masayoshi Son’s outfit may fare better than Japanese firms that once splurged on Impressionist paintings and Rockefeller Center. But those assets weren’t easy to copy.
Viewsroom: Fiat Chrysler’s painful choices 24 Aug 2017 Great Wall Motor wants to buy Jeep. That’d leave the Italian-American carmaker cash rich but devoid of profit in a fast-changing industry. Meanwhile, Uber tries to find a silver lining to the cloud its drivers are under. Plus: what makes China’s unicorns a different breed.
Samsung is worse off regardless of trial verdict 24 Aug 2017 A jail sentence for de facto leader Jay Y. Lee would leave Samsung’s flagship $300 bln unit rudderless. A legal victory would create problems, too: Lee’s defence of wielding little power at the wider group damages his authority. It has a leadership deficit either way.
Mitsui Sumitomo makes pricey advance in Asia 24 Aug 2017 The Japanese group has swooped on Singapore’s biggest property and casualty insurer for $1.6 bln in cash. That equates to an expensive-looking 3.3 times book value. Still, the deal will consolidate the buyer’s already strong presence in fast-growing Southeast Asia.
Samsonite luggage could travel more 24 Aug 2017 The world's largest luggage-maker reported flat earnings in the first half, as it digests a big acquisition. Alone among fashion stocks, Samsonite offers a unique pure play on travel. But for all its globe-trotting image, it looks over-dependent on American demand.
Tencent’s team has upper hand in Chinese food fight 23 Aug 2017 China’s three web giants are supporting rival food-delivery firms, in a big bet on “online-to-offline” services. The leader, Tencent-backed Meituan-Dianping, is cashed-up and looks unassailable. Even a mooted merger of its rivals could distract them and help bring subsidies down.
Jeep sale would leave Marchionne nowhere to hide 22 Aug 2017 The Fiat Chrysler CEO advocates using M&A to stop carmakers wasting precious capital. Selling the company's top brand to China's Great Wall - a long shot politically - might raise $23 bln. But it would leave an emaciated rump and set up Marchionne’s last lap to be a dismal one.
McDonald’s ain’t loving the local Indian recipe 22 Aug 2017 The U.S. burger chain is taking the nuclear option, shutting 169 stores as a spat with a partner boils over. It's one reason McDonald's has fallen behind rivals in a huge potential market. Partnerships are always vulnerable but India's byzantine legal system raises the stakes.
BHP uses commodity rally to fortify position 22 Aug 2017 The Anglo-Australian miner swung to an annual net profit of $5.9 bln. Plans to exit a troubled shale business and hold off on investing in potash chime with demands from Elliott, an activist hedge fund. The compromise, plus more focus on financial strength, looks sensible.
Three steps to an Infosys reboot 22 Aug 2017 The $31 bln Indian IT giant is in a mess after its CEO quit. To restore confidence, it needs fewer bosses and to find a strong outside CEO. Publishing a report into whistleblower claims would also help draw a line under a founder's complaints of mismanagement.
Fiat Chrysler would rev up China’s Great Wall 21 Aug 2017 The $19 bln Italian group has bid interest from the Chinese carmaker. Just as Geely’s takeover of Volvo helped it revamp designs, Great Wall could benefit from Fiat’s knowhow, especially at Jeep. But this could seriously stretch the buyer’s finances and management capacity.